View: Firms that fail to address ageism risk losing talent, and a dip in productivity and innovation
As the global workforce greys, tension between age and employment is intensifying. Ageism is becoming a pervasive issue, with studies showing that older employees face barriers to fair treatment and opportunity.
A 2018 AARP ‘Value of Experience Study’ found that 61% of American adults over 45 had experienced age discrimination in workplace. The bias, particularly in hiring and promotion, is stark. Many employers in the US struggle to assess the potential productivity of older employees without prejudice, overlooking the wealth of experience they bring.
In India, ageism is a growing concern. The pandemic has exacerbated the issue, as many companies used it to push older employees out. According to Randstad India’s 2024 study, ‘Beyond Numbers: Intergenerational Insights on Ageism’, about 31% of workers in India have encountered age discrimination, with experiences varying based on industry, gender and age.
Ageism is rooted in biased assumptions that older workers are resistant to change, less adaptable and less capable of learning new skills. Ageism, much like racism or sexism, not only harms individuals but also robs organisations of valuable experience and innovation, creating a less inclusive workplace culture. As companies evolve DEI (diversity, equity, inclusion) initiatives, it’s crucial to add ageism to the agenda.
Liat Ayalon and Clemens Tesch-Romer define ageism as stereotypes, prejudice or discrimination – not just against but also in favour of people – because of their chronology. It is a negative attitude or disposition toward ageing and older adults based on the belief that ageing makes people unattractive, unintelligent, asexual, unemployable and mentally incompetent.
The impact of ageism, of course, extends far beyond the workplace. It can diminish self-esteem, promote stereotypes and hinder intergenerational cooperation. Studies have shown that ageism contributes to poorer physical and mental health, earlier mortality (by up to 7.5 years) and slower recovery from disabilities in older adults. Ageist attitudes also encourage unhealthy behaviours such as smoking, binge drinking and substance abuse.
One of the most damaging misconceptions is that older workers are less trainable or adaptable to change. This results in older employees being overlooked for promotions, denied access to professional development or excluded from key projects. These perceptions drive older workers into less-stable, lower-paying contract or gig jobs, increasing job insecurity and economic instability.
For instance, subtle acts of discrimination, such as younger colleagues referring to older employees in Indian workplaces as ‘Uncle’ or ‘Auntie’, perpetuate stereotypes. In digital industries, where innovation is associated with youth, cliches like ‘only young people have fresh ideas’ are rooted in biased thinking.
Consequences of ageism are also evident in leadership positions. One older employee shared how her younger boss dismissed her input saying, ‘You’re giving me gyan? YOU?’ – implying that her knowledge was irrelevant because of her age. This is the kind of subtle but damaging discrimination that older workers regularly face, making it difficult to prove or confront.
The stereotypes are not backed by evidence. Contrary to popular belief, youth is not the primary driver of innovation or success. A study on entrepreneurship found that the average age of founders of successful businesses was 42. In fact, for the top 0.1% of startups based on revenue growth, the average age of founders was 40.
This evidence suggests that companies can benefit from encouraging the hiring and retention of older employees. Unfortunately, when organisations fail to address age discrimination, they not only risk losing valuable talent but also incur significant costs in terms of reduced productivity, lower employee morale and higher turnover.
Older workers who feel demotivated by discriminatory behaviour are more likely to quit, leading to higher recruitment costs and a loss of institutional knowledge.
So, how to address and tackle ageism?
Measure and report age diversity: Just as companies track diversity metrics related to gender, race, LGBTQ, etc, they should also track and report the age distribution of their workforce.
Use inclusive language: Terms like ‘young at heart’ or ‘X years young’ can, ironically, reinforce harmful stereotypes. Similarly, phrases like ‘silver tsunami’ or ‘grey wave’ that describe an ageing population as a looming disaster are problematic. Avoid using age-specific language unless it is relevant to the context.
Eliminate ageist terminology: Just as companies have moved away from racist or sexist language, they should ban ageist terms, expressions and double entendres.
Create intergenerational bridges: Encourage cross-generational collaboration through mentorship, team-building exercises and intergenerational projects. These initiatives help break down age-related barriers, enabling knowledge sharing seamlessly.
Ensure equal access to training: Companies should provide training and professional development opportunities for employees of all ages.
When companies do for age what they do for race, gender and caste, they will be a more diverse and welcoming workplace. Until workplaces take ageism seriously, it will continue depriving employers of wisdom, experience and talent, and inflicting unjust behaviour on people simply because they have ‘too many birthdays’.
After all, if we can entrust our nations to politicians in their 70s, why should the corporate world be any different?
Source: GWFM Research & Study